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Bihar Professional Tax

Professional Tax in Bihar is governed by The Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 and The Bihar Professional Tax Rules, 2011. The tax is administered statewide by the Commercial Taxes Department, Government of Bihar.

1. Statutory Tax Slabs​

In Bihar, Professional Tax is computed on the basis of annual gross salary or wage brackets. Employers are statutorily required to deduct the applicable annual tax from the salary or wages payable to employees in respect of the month of September every year (or apportioned across payroll cycles).

Annual Gross Salary / Income RangeAnnual Professional Tax (₹)Payroll Deduction Remarks
Up to ₹3,00,000NILCompletely exempt from PT
₹3,00,001 to ₹5,00,000₹1,000Deducted annually (typically September payroll)
₹5,00,001 to ₹10,00,000₹2,000Deducted annually (typically September payroll)
Above ₹10,00,000₹2,500Maximum constitutional limit (Article 276)
September Payroll Deduction Rule

Under the Bihar Professional Tax Rules, employers are directed to deduct the total annual tax payable by employees from the salary or wages payable for the month of September each financial year.

2. Employer Registration (Form PT-V & Form PT-IV)​

Every person or employer liable to pay tax under the Act must secure registration:

  • Employer Registration (PTRC): An application for registration as an employer deducting tax from employees must be submitted in Form PT-V within 30 days of becoming liable.
  • Enrolment (PTEC): Self-employed persons, companies, LLPs, and independent professionals must apply for an enrolment certificate in Form PT-IV.
  • Required Documents:
    1. Memorandum of Association (MOA) and Articles of Association (AOA) / Partnership Deed
    2. Permanent Account Number (PAN) Card of the entity and authorized signatories
    3. Registered business address proof and Lease / Rent Agreement
    4. Bank account statement / cancelled cheque
    5. List of employees with gross salary structures
    6. Identity and Address proof of Directors / Partners / Proprietor

3. Remittance Schedule & Annual Return​

Tax Remittance​

  • Due Date: Professional tax deducted by the employer must be deposited into the government treasury on or before the designated statutory date following the deduction period (via online e-Challan).
  • Payment Portal: Electronic payments are processed through the Bihar Commercial Taxes Department e-Services Portal.

Annual Return​

  • Return Form: Form PT-VIII (Annual Return by Employer).
  • Filing Deadline: Annually on or before 30th November of each financial year.
  • Form PT-IX: Statement of tax deduction details submitted along with the annual reconciliation.

4. Statutory Exemptions​

The following categories are exempted from Bihar Professional Tax:

  1. Individuals earning an annual gross income of up to ₹3,00,000.
  2. Members of the Armed Forces of India (Army, Navy, Air Force) governed by the Army Act, Air Force Act, or Navy Act.
  3. Physically challenged persons having permanent physical disability (including blindness and locomotor disability of 40% or more, certified by a competent medical board).
  4. Parents or guardians of children with permanent disability or mental retardation.
  5. Foreign diplomatic missions and consular representatives.

5. Official Portal & Reference Links​

❓ Frequently Asked Questions (FAQs)​

When do employers in Bihar deduct Professional Tax from employee salaries?​

As per the statutory rules, employers deduct the annual tax payable from the salary or wages payable to employees in respect of the month of September every year.

What is the minimum salary threshold for PT deduction in Bihar?​

Employees earning an annual gross salary of up to ₹3,00,000 are completely exempt (NIL tax). PT is applicable only when the annual salary exceeds ₹3,00,000.

What is the due date for filing the annual PT return in Bihar?​

The annual return in Form PT-VIII must be filed by the employer on or before 30th November each year.